Cargo claims cost the trucking industry over $50 billion each year. Every load that leaves the dock without proper checks—and arrives without verification—is at risk. While many claims are straightforward, a common misconception persists: Drivers are not automatically in the clear once the bill of lading (BOL) is signed at the shipper.
Reducing the risk of cargo claims takes a proactive approach. Here are three essential steps:
1. Document Everything
Take clear photos of the load before leaving and again at delivery. If anything unusual happens en route—such as road incidents or delays—document it. This evidence can be your strongest defense in the event of a claim.
2. Check the BOL
Before departure, compare the BOL to the actual load. If there’s a discrepancy, address it immediately. Verifying this early can prevent costly disputes later.
3. Trust, but Verify Load Securement
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Flatbeds: Ensure loads are properly tarped to prevent loss or damage.
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Dry Vans: Secure freight with proper padding, airbags, straps, or load bars.
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Reefers: Confirm the unit is running, set at the correct temperature, and functioning properly before departure—and keep it running until all cargo is unloaded.
A simple walk-around inspection and a few photos can save thousands of dollars and greatly reduce your liability.
The Importance of the Right Coverage
Typical auto liability and cargo policies have $100,000 limits—but cleanup, disposal, and high-value freight can quickly exceed that. For example, a $90,000 damaged load plus $20,000 in cleanup costs would leave you personally responsible for $10,000.
Review your policy with your insurance broker to ensure your coverage matches your risk. Pay attention to common exclusions:
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Broad-form coverage: Don’t assume you have it just because your COI says “cargo coverage.” Confirm with your agent.
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Refrigeration endorsement: Even with reefer breakdown coverage, certain high-value goods (like seafood) may be excluded.
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Non-ferrous metals: Some policies exclude commodities like copper, aluminum, or gold—always clarify with your underwriter.
Even after the BOL is signed, claims can be filed for up to nine months. If one comes in, don’t panic—your insurer has the duty to defend you. The key is to have thorough documentation and preventative measures in place to back up your side.
